Arbitrary Dismissal & End-of-Service in Lebanon: Your Rights (2026)
Lebanon: NSSF end-of-service indemnity (1 month/year, paid on eligibility not on dismissal), arbitrary-dismissal damages (Art. 50: 2–12 months), notice tiers, and the impact of the currency crisis on payouts.
In Lebanon, end-of-service indemnity is held by the NSSF, not paid directly by the employer; the employer funds it through an 8.5% payroll contribution. It accrues at one month of the last salary per year of service, but it is disbursed once the statutory eligibility conditions are met (typically on reaching retirement age), not automatically on dismissal. Notice scales with seniority (1 to 4 months). Arbitrary dismissal (Art. 50) is compensated at the court's discretion, commonly between 2 and 12 months' wages, and that award is separate from the NSSF indemnity. Note: the lira collapse has wiped out much of the real value of NSSF indemnities, prompting a 2023 pension reform.
FAQ
Who pays end-of-service indemnity in Lebanon?
It is held and paid by the National Social Security Fund (NSSF), not directly by the employer, and funded by an 8.5% employer payroll contribution. It accrues at one month of the last salary per year of service, but it is disbursed once the statutory eligibility conditions are met (typically on reaching retirement age) rather than automatically on dismissal. Check your own position with the NSSF. Note: the 2019 currency collapse has badly eroded the real value of these payouts.
What is the compensation for arbitrary dismissal in Lebanon?
Under Article 50 of the 1946 Labour Code, the court sets damages at its discretion based on circumstances, commonly between two and twelve months' wages, in addition to notice pay. It is separate from the NSSF end-of-service indemnity, which follows its own eligibility rules.
What is the notice period before termination in Lebanon?
It scales with seniority: one month for under 3 years, two months for 3–6 years, three months for 6–12 years, and four months for over 12 years.